Unlicensed agents being charged in court
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesUnlicensed agents being charged in court
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Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12yMy long standing opinion is that wholesaling is nothing more than unlicensed brokering with some legal mumbo-jumbo wrapped around it to circumvent licensing laws. And not nearly as lucrative as the gurus who teach it claim. So that whole business is really about gurus fleecing newbies out of what little cash they might be able to scrape together. A house cleaning is overdue. Of course any new laws or regulations often have the unintended consequence of creating new guru opportunities.
55 Replies
- Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes12y
Brian, sometimes I wish you wouldn't do that, it got some chuckles here, if the little old lady says she didn't understand you can ask her a hundred times if she does and you'll get the same response.......well. I thought I understood it all until my attorney, daughter, son, minister explained to me what I did.
Don't make up BS disclosures trying to CYA and simply display your lack of common practice, contract law and stating aspects multiple times, simply not in good form nor as to content, sorry, but just don't want newbies going down that road.
11 may be illegal, see state laws, federally, this ain't the old days, if you close are you taking that responsibility, tax filings, closing statement, pro-rations of credits and debits, even familiar with ALTA requirements? Not only are investors not licensed to close, they aren't insured closing agents providing title coverage on the filings! Indicates there are other issues with this buyer so far away from usual and customary, the judge should get a kick out of acting in that capacity.
12. copies are required at the time of execution. not when someone gets around to it.
13 basically says the same thing as 12.
14 is irrelevant and
15 should go in the purchase agreement/option or what ever the screwy deal requires, no need to say things twice, the assumption is that the elderly are not idiots, blind, deaf or intoxicated
16, since when is some stock broker or insurance guy or some personal financial planner necessary to advise in real estate matters? The judge will love that one too.
17, OMG, that young man was very polite and explained that I wasn't getting cheated at all, he told me it was all in my best interest..... you're asking the little old lady to confirm something she is not qualified to determine, unless she's a JD! You open the door to a ball of worms here.
18, oh, a doosie now she has to disclose her medical conditions, her lumbago that hurts, admit she has short term memory issues, her depression from being so dang old, ever hear of discrimination for age or health issues?
19, now she has to admit her sobriety, in what state is that required? Just because she had a couple cocktails doesn't mean contracts aren't valid, any 40 year old guy could be smashed and still held to agreements made, different contract law requirements after 70?
20 and 21, she doesn't know what she doesn't know, saying she knows doesn't mean she does especially if properly advised, that again goes to her opinion at the time as things were explained. Saying I'm not messing you over doesn't mean I'm not messing you over!
Also, 20 is recited in the purchase agreement!
22, disclosure of being a licensee is a state requirement in the state where the license is held, if I'm dealing in Texas and I hold a Missouri license, Missouri's requirements stop at the state line and in Texas, I have no state recognized real estate knowledge on Texas law as to having greater knowledge than the general public in Texas. I'll bet that is the case as an out of state licensee has no particular knowledge as to Texas laws, requirement or customs, my assumption not knowing TREC regulations.......if there is, then I violated the TREC but they'd have a heck of a time asking Mo to lower the hammer on me.
Investors should never do DIY disclosures thinking you're CYAing, most likely you're opening the door to further insight into your knowledge and expertise, your efforts become self defeating, attempting to avoid any responsibility normally associated in business transactions, the more you say the deeper you get. No disclosure is going to absolve you of your actions or conduct. Dealing with the elderly doesn't need to imply they are possibly incompetent, intoxicated, forgetful, idiots that can't enter into an agreement. These aspects are discovered through third parties, attorney, relatives, home nurse or nursing home administrator, if such matters do apply, best just to hold off and get it done properly when issues are taken care of legally.
Brian, you're much better than this, I suspect you actually meant to post some document your attorney drafted for you and you messed up pulling from your files posting something some student sent you for your comment. Common mistake...... :))
- Flipper/Rehabber · Atlantic County, NJ · Member since 2012 · 514 posts · 209 votes12y
Back to the op comments, most here are not trying to swindle old people in 2nd-3rd world countries or anybody for that matter! My point is everyone here, is here to learn from personal experiences. Every experience is unique. I don't personally believe you intended to bash wholesalers... It's just very easy for most to turn that direction.
There are several ways to wholesale re and you do not have to swindle older, incompetent, ill advised, ignorant and desperate human beings just to make a few thousand dollars... Do some want TOP dollar? Do some wholesalers take advantage of this? Do some agents take advantage of this? YES! Are they scum YES!!!!
The problem is in the past, a bunch of greedy people created just enough laws to stop 99% of people from ever becoming successful or thinking out of the box... BUT keep just enough loop holes/grey areas (as some like to say) to make them a ka-trillion dollars in the mean time!
With TV, Internet and social media you can't live in the past! Things change so drastically in the information super highway that it's almost, if not impossible to keep up!
Life's to short to bicker over nonsense. If you can help someone, help them. If you can give you're personal opinion on what you would do, do it. Don't criticize, we're all here for the same reasons... Opinions are just that, OPINIONS!
- Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes12y
Hmm, in my state you are exempt from having a realtor's license if you are an attorney. Now I doubt any realtor will give me a referral fee for sending them a client. I also doubt getting anyone with common sense would become an attorney to avoid getting a realtor's license. I doubt many attorneys want to become wholesalers too.
- Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes12y
that's all well and good but the fact is when you have an unregulated industry people are going to get taken advantage of and hurt financially.. I know we are all on BP to ra ra for those that want to get into the bizz and just like taking a guru course they read on BP and decide they are going to go out and tie up properties and flip them.. YOU know and I know many of these folks have no money can't perform and will damage innocent sellers. That's the point how does this get regulated so sellers are not abused in the process. In my simple mind I think if you want to wholesale great just buy the flippin property then resell and call it a day..
- Greenwood, IN · Member since 2014 · 58 posts · 11 votes12y
You're a wholesaler, you tell the seller that you are a wholesaler and that you will be assigning their contract to another buyer. It's in writing too. How is this unethical.
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